The Japan Tobacco Group reported revenue of ¥547.4 billion ($5.02 billion) for the first quarter of 2021, up 5.3 percent over the revenue reported in the 2020 first quarter. Adjusted operating profit increased 21.3 percent to ¥178.1 billion while operating profit was up 24.2 percent to ¥160.1 billion. At constant currency, adjusted operating profit was ¥186.9 billion, up 27.2 percent from the 2020 quarter.
“JT Group maintained a strong momentum in the tobacco business, mainly fueled by continued market share gains in combustibles in many markets. Furthermore, temporary and favorable industry volume trends in some mature markets resulted in a robust first quarter,” said Masamichi Terabatake, president and CEO of the JT Group, in a statement.
“As announced in February, we are focusing our management resources on heated-tobacco sticks and are currently preparing the launch of Ploom X, our next-generation device in this category, in the second half of this year. Additionally, we are making steady progress as planned in developing a blueprint of our new operating model and organizational structure for a combined tobacco business from 2022.
“With our robust first-quarter performance, we aim to achieve our full-year forecast. However, we cannot ignore the uncertainties that the Covid-19 pandemic poses, so we will continue to closely monitor the changing operating environment.”
For the full-year 2021, the JT Group expects revenue to decrease by 0.6 percent to ¥2.08 trillion. Consolidated adjusted operating profit at constant currency is expected to increase by 5.1 percent to ¥512 billion.
On a reported basis, adjusted operating profit is forecast to decrease by 2.5 percent to ¥475 billion. Operating profit is forecast to decrease by 22.6 percent to ¥363 billion.